Increased Sales Signal Solid Beginning to Spring Buying Season

Sales of single family residential properties increased 11.2 percent in April, compared to the same month last year, based on numbers reported by the Ann Arbor Area Board of REALTORS®, with 277 properties sold, compared to 249 in April 2015.

Inventory continues to be a problem, with new listings down 1.5 percent, at 605 single family residential properties, compared to 614 new residential listings a year ago.

Both listing and sale prices are up an average of 6 percent. The average list price for April 2016 was $289,601, compared to $272,856 in April 2015, an increase of 6.1 percent. Sale prices behaved similarly, with the average sale price for April 2016 coming in at $285,157, compared to $269,321 a year ago, an increase of 5.9 percent.

Lawrence Yun, chief economist of the National Association of REALTORS®, says last month's pending sales increase signals a solid beginning to the spring buying season. "Despite supply deficiencies in plenty of areas, contract activity was fairly strong in a majority of markets" he said.

"This spring's surprisingly low mortgage rates are easing some of the affordability pressures potential buyers are experiencing and are taking away some of the sting from home prices," explains Yun.

"The healthy labor market and favorable borrowing costs should lead to sustained buyer demand and a durable pace of sales," according to NAR.

To see more Ann Arbor Area housing statistics, view the April 2016 Statistics Report.